Wall Street ends higher on cool inflation data, strong earnings

Wall Street concluded the Wednesday, 15 July 2026, session on an upward trajectory, bolstered by a dual tailwind of favorable inflation data and a strong start to the second-quarter earnings season. All three major U.S. Stock indexes posted gains, as investors shifted capital toward consumer-focused retail and travel and leisure sectors, despite underlying volatility in the semiconductor industry.

The Dow Jones Industrial Average rose 150.91 points, or 0.29 percent, to finish at 52,659.18. The S&P 500 climbed 28.83 points, or 0.38 percent, reaching 7,572.42, while the Nasdaq Composite advanced 162.22 points, or 0.62 percent, to settle at 26,269.23. Trading volume across U.S. Exchanges reached 16.27 billion shares, remaining below the 21.40 billion share average observed over the preceding 20 trading days.

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This session followed the release of the Labor Department's Producer Price Index (PPI), which provided a second consecutive day of cooler-than-expected inflation data. This arrived one day after a favorable Consumer Price Index (CPI) report, which showed June inflation cooling due to abating energy price pressures. These reports reached markets as U.S. Federal Reserve Chair Kevin Warsh conducted his second day of Congressional testimony before the Senate Banking Committee, outlining the central bank's strategy to contain upward price pressures.

The data provided a signal to investors regarding the future path of the U.S. Federal Reserve’s monetary policy. Financial markets are currently pricing in a 10.2 percent likelihood of a 25-basis-point rate hike at the conclusion of the central bank's upcoming policy meeting, down from 31.0 percent one week prior, according to CME's FedWatch tool.

Market analysts noted that the inflation data provided the Federal Reserve with necessary flexibility.

"My fear going into this week was, we could get a hot CPI print, inflation above 3.8%, and we didn't get it; we got a cooler reading of 3.5%. So that allows the Federal Reserve to have the opportunity to keep rates flat or cut them later this year, which is good news for the market."

Lauren Cassidy, chief investment officer of Founders 100 ETF, via Reuters

Earnings and Corporate Activity

Corporate dealmaking and financial performance drove significant market movement. PayPal shares surged 17.2 percent following reports that payment processing firm Stripe and private equity firm Advent International have jointly offered to acquire the company at a price of $60.50 per share. The financial sector remained a pillar of strength, as BlackRock shares advanced 6.6 percent. Morgan Stanley also ended the session higher, up 0.4 percent.

Elsewhere in the technology sector, Apple shares rose 4 percent to reach a closing high of $327.50 following reports that the company received approval to deploy generative AI features in China. Conversely, Dell Technologies shares declined as investors weighed concerns regarding cloud providers potentially overbuilding AI computing capacity.

Geopolitical Tensions and Risks

Despite optimism surrounding earnings and inflation, analysts remain cautious regarding the conflict between the United States and Iran. Although investors were previously hopeful for a peaceful resolution, recent airstrikes between the two nations in the vicinity of the Strait of Hormuz have injected uncertainty into the outlook for energy prices. Fed Governor Lisa Cook stated that she remains prepared to act if inflation does not continue to show signs of slowing, emphasizing the persistent monitoring of external price pressures.

What to Watch Next

As the second-quarter earnings season intensifies, market participants are monitoring several upcoming disclosures:

• Technology: Continued observation of semiconductor demand, particularly following guidance from ASML Holding NV.
• Corporate Health: Upcoming results from UnitedHealth Group, Abbott Laboratories, GE Aerospace, and United Airlines are expected to provide further insight into the broader economy.
• Energy Impact: Continued observation of oil prices and shipping logistics in the Strait of Hormuz, which could influence future inflation expectations.